Welker products sells small kitchen gadgets

Reference no: EM13903889

Welker Products sells small kitchen gadgetsfor $15 each. The gadgets have a variable cost of $4 per unit, and WelkerProducts' fixed operating costs are $220,000 per year. Welker Products' capitalstructure includes 55% debt and 45% equity. Annual interest expense is $25,000,and the corporate tax rate is 35%.

17. Calculate the break-even point inunits.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

18.If Welker Products sells 25,000 units, calculate the firm's EBIT

Reference no: EM13903889

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